Iceland millions to be returned

MILLIONS of pounds feared lost in the collapse of the Icelandic bank Glitnir are set to be returned to local taxpayers.

Around £6.5million invested by Cherwell District Council (CDC) will be returned in full, it was announced last week.

The council was one of a handful of local authorities chosen as test cases by the Icelandic District Court earlier this year.

Last year, a body charged with dissolving the bank said it would not give preferential status to wholesale depositors. Local councils successfully challenged the decision in a district court, but the case finally had to be decided by the Icelandic Supreme Court.

Councillor Ken Atack, CDC’s lead member for financial management, said the council was delighted with the decision.

He added: “This judgment means that Cherwell has priority status over other creditors’ claims and will be paid first when it comes to getting its money back.

“This decision, which comes more than three years after the banks failed, is a huge victory.

“The way in which the LGA and our legal advisors have co-ordinated the legal action with other local authorities has minimised legal costs while enabling us to advance the strongest possible arguments to secure this result.

“The cost of the litigation to date amounts to less than one per cent of the amount we expect to recover.”